Little Black Dress - Live Project by Emily Kemp

#feelingfabulous

EMILY KEMP N0684707

Word count: 3,483 I confirm that this work has gained ethical approval and that I have faithfully observed the terms of approval in the conduct of this product.

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Contents 1 2 4 6

Introduction Methodology Brand History Current Strategy

8 10 12 14 16

Market Overview PESTLE Macro Trends Micro Trends Market Health

18 20 24 26 28 30 32 36

Situational Analysis Brand Audit Segmentation AIDA Model Target Consumer Positioning map Key Competitor Analysis SWOT analysis

38 40 42 44 45 48 54 66

Projected Strategy Objectives Ansoffâ&#x20AC;&#x2122;s Matrix 3 Year Strategy Plan Sizing Guide Improvements Concept Concessions Cancer Research Partnership DRIP Model

68 76 78 84 90 92

Communication Plan Core Competencies Timeline For Implementation Budget KPIs Balanced Scorecard

Conclusion

102 102 106 114 116 122

Appendices Appendix 1 - Women’s Online Survey (Questions) Appendix 2 - Women’s Online Survey (Answers) Appendix 3 - Men’s Online Survey (Questions) Appendix 4 - Men’s Online Survey (Answers) Appendix 5 - Individual Interiviews (Questions and Responses Transcripts) Appendix 6 - Individual Interviews (Consent Forms) List Of Illustrations References Bibliography

126 130 138 140

Introduction Since their relaunch in 2014, Little Black Dress have been gaining momentum, thanks to their partnership with Alesha Dixon, though are still struggling to become a renowned, go to brand for premium dresses. This report shall review LBDâ&#x20AC;&#x2122;s current situation, both internally and externally, and the market they operate within including the macro and micro trends affecting them. Drawing from their current strengths a 3-year marketing plan and a 1-year tactical communication plan will be developed to reach their ultimate aim.

Methodology PRIMARY

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Brand History 2008 FOUNDED 2014 RELAUNCH Relaunched with a clearer focus on developing a clear and differentiated brand positioning

2015 ALESHA DIXON JOINS Alesha Dixon joined as a board member, shareholder and brand ambassador. Sheâ&#x20AC;&#x2122;d previously been asked to join M&S but desired to create something herself. She now has as exclusive line with LBD.

2016 FIRST COLLECTION The first collection, which included 8 dresses, overall, was a disaster. Only one piece proved successful which was in fact the most expensive at ÂŁ350, this remains as the most expensive piece LBD has produced and sold proving that they can sell higher ticket items however they havenâ&#x20AC;&#x2122;t since due to the high costs of manufacture.

2017 NOW? The brand is now on their third collection which includes 17 dresses and which are showing much more consistency in success. They aim to have 25-30 dresses in the next collection.

- (LBD, 2017)

Current Strategy PRODUCT Premium, high quality, evening-wear dresses • Own label - Includes one consistent piece (The Audrey Hepburn Dress) Use of chicken feathers has proven popular in their products • Alesha Dixon collection • Drop-ship (55 brands) Stock Sizes 8-16 and some 18s Stock some non fashion brands such as Fake Bake and Eylure to help complete women’s looks

PRICE Dresses considered an investment piece rather than just for one night Average price £120 Most expensive pieces: • Little Black Dress £350 • Alesha Dixon £250 • Drop-ship £3500

PLACE E-commerce brands Sell in Lipstick Were placed in Debenhams however pulled out Plans to join House of Fraser next year

PROMOTION Able to reach customers from about 10 touch-points in a 20 day period Use social media usage but receive little engagement from consumers Competitions with prizes worth up to ÂŁ3500 High search engine optimization resulting in 80% of their web traffic being organic Donâ&#x20AC;&#x2122;t currently promote internationally Have dressed hundreds of women at F1 Monaco in hope of press attention though this proved unsuccessful

PROCESS Manufacture is the most difficult process due to aligning designers with suppliers, manufacturers, fabrics, skills etc. Currently only have 3 suppliers in the UK, Dubai and Romania From design stage to get products to shops takes 3 months on average

PEOPLE Alesha Dixon as shareholder, brand ambassador and exclusive collection creator

- (LBD, 2017)

Market Overview

PESTLE POLITICAL â&#x20AC;&#x153;Geopolitical instability, terrorism, Brexit, and stalled trade deals will all increase a pervasive sense of uncertainty in the global economyâ&#x20AC;? ((McKBOF, 2017 report) in Pratap, 2017)

Though improvements have been seen since the initial vote, uncertainty still looms over the future state of the UK economy leaving some individuals still cautious of their spending.

ECONOMIC A challenge continues due to an uncertain economic backdrop. - (Tamara Sender Ceron, Senior Fashion Analyst, 2017) Real incomes have been falling through all of 2017 as the cost of living had been increasing significantly more quickly than average wages - (Mintel.com, 2017) Consumers are more cautious on spending on luxury products. Fashion brands may struggle as consumers are less eager to part with their cash and may look for cheaper alternatives than those offering premium goods with a price tag to match.

SOCIAL Changing social attitudes are pushing for inclusivity on all aspects. Brands must consider this in all aspects of their marketing mix ensuring not to exclude anyone or face negative brand perception from the market. Today this is more important than ever; consumers are more concerned of brand values than before, willing to look elsewhere even if it means compromising somewhat on price or design.

TECHNOLOGICAL As technology improves the expectations for delivery times is becoming quicker and quicker. For pure play businesses in particular, a streamlined, highly efficient delivery and returns procedure is essential. The rise of m-commerce additionally calls for a website or app operational and accessible for mobile shoppers giving more option to the consumer.

LEGAL Compliance with ethics and labour laws amplified when the true treatment of workers became exposed to the public. This became paramount after the 2013 Rana Plaza collapse in Bangladesh, which killed over 1,100 workers, bringing to light the unsatisfactory manufacture they were working in. This also pushed for further interrogation which only showed more poor practices within the industry’s manufacturing process.

ENVIRONMENTAL “In the emerging markets more than 65% of the consumers are seeking sustainable fashion actively. In the mature markets this figure is 32% or less” - (Pratap, 2017)

As a premium brand, LBD's biggest area for concern, in the macro environment, will be the stability of the economy and people's perceived sense of wealth. They must find additional incentives to make buying their products feel worth the price tag.

D CONVERSATION N A AL TS O CO B MM

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The trends show a need for: • Inclusivity from brands. Failure to do so will result in a poor brand image and possible scrutiny radiated across social media leading to a considerable loss of potential customers. Age should no longer be the leading segmentation category used but rather focus on attitudinal and behavioural variances of the market to better target and understand customers. • Greater optimisation of online platforms; fully enhancing websites to make them as useful for customers as possible by offering information in ways which wasn't previously conceivable. • Social media being used to better converse with customers and encourage more repeat purchasers. • Brands giving back to the community. • Looking at physical presences in a new light making them more engaging and interactive.

Market Health GLOBAL CLOTHING RETAIL Estimated to grow by 3.1% in 2017 to reach £57.7 billion - (Tamara Sender Ceron, Senior Fashion Analyst, 2017)

GLOBAL PREMIUM FASHION Worth £23/4 billion 50% of designer fashion consumers are now shopping online

UK CLOTHING RETAIL Forecast to grow by 1.3% in 2017 - (Mintel, 2017)

UK ONLINE SALES OF CLOTHING, FASHION ACCESSORIES AND FOOTWEAR Worth £16.2 billion Online sales of fashion have increased to account for 24% of total fashion spend in 2017, up from 17% in 2013 Estimated to increase by 17.2% in 2017 Expected to increase by 79% by 2022, reaching just under £29 billion Pure plays account for approximately 38% of the UK online fashion market 66% internet users in the UK have bought fashion items online in the last 12 months - women 10% more likely than men to have bought online -(Mintel, 2017)

The fashion industry as a whole continues to show growth but it’s the online market which proves to be the best opportunity for the future.

Situation Analysis

Brand Audit

MISSION “Empowering women to feel fabulous is our key mission in life.”

VISION “We sell beautiful dresses. But we are about more than that – we have a vision to be the name on every woman’s lips, loved around the world – and adored by all.”

VALUES “We believe in championing real women who inspire. Those women who dream big and work hard to achieve their goals and share our drive.”

ESSENCE Fun Flirty Glamorous FABULOUS!

BRANDS FINANCIAL 2016 £3 million revenue About 0.0125% market share of UK premium fashion retail market 2017 Expected £5 million revenue

Sell about 1000 dresses a week - half their own, half drop-ship - (LBD, 2017)

SOCIAL MEDIA

57k likes 56k followers

(Facebook.com, 2018)

16.2k followers (Twitter.com, 2018)

10.9k followers (Instagram.com, 2018)

3.1k followers

(Pinterest.com, 2018)

500 subscribers (Youtube.com, 2018)

Segmentation PRIMARY (The key consumers LBD must be aware of and prioritise with their future strategy)

- (LBD, 2017)

89% LBDâ&#x20AC;&#x2122;s customers are female and 9/10 buy for themselves 91% purchases made from within the UK, 27% of which are from London

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PERIPHERAL (Consumers who show interest with the brand but make few purchases - oppurtunity for future growth) Be

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- (LBD, 2017)

SECONDARY (Consumer segments LBD still must address and remain accessible to without dwindling excessive funds on them)

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AIDA “...marketers must select the appropriate tools, which

may vary from one stage to the other, depending on the desired results...to create awarenesss...create interest and desire to get the desired action (purchasing).” - (Strauss and Frost, 2012)

Segments can be categorized into these stages.

ATTENTION The Naive Market LBD’s main aim for the future is to establish themselves as a well known brand. Strategy should focus on increasing brand awareness through partnerships with people and organisations while optimising social media platforms to further reach.

INTEREST The Unconverters The unconverters show interest as the age group who create the most website traffic though a lower rate of them convert in comparison to ‘The Ageless Woman’. Actions should focus on highlighting additional incentives such as free delivery and returns as well as differences between competitors to tempt browsers to making a final decision.

DESIRE Teens looking for prom dresses Though it’s likely to be their parents to become the actual customer it is teens who are the consumers. They are the ones likely to be browsing online to find their perfect dress at a price suitable for their parents. Similarly to those under ‘interest’, the aim here will be to highlight the additional benefits of purchasing from the brand in order to tempt parents to their final decision. The brand must also convince both customer and consumer that they’ll be providing ‘the perfect dress’, this should consider the style, material and quality, by properly presenting dresses on their website, and lastly fit which is often the biggest trouble with buying clothing online.

ACTION The Ageless Woman As LBD’s core customer it is The Ageless Women who most often takes action to make a purchase. As purchases are already being made with this segment the aim here is retention; after purchase efforts to bring the customer back in future and develop a sense of brand loyalty. To achieve this strategy must focus on customer satisfaction and interaction after purchase.

Target Consumer (Example core customer - fits into ‘The Ageless Woman’ Segment) This is Claire, she’s 41 and lives in Chelsea, London. Having worked hard her whole life, she is at a point where she’s financially stable, with a little more time on her hands, and doesn’t mind spending a bit more in order to make herself or others happy. This could be travelling; exploring new cultures and food, dressing up to go out with friends or working with local charities with events to help her community. Due to this, LBD has become one of her favourite brands as she often is in need of a new occasion dress, making a purchase once every few months. She uses Facebook and Instagram on a regular basis to connect and keep up to date with her friends and family as well as gaining inspiration from fashion and lifestyle bloggers. This connection helps her build a relationship to a product before an actual purchase.

Positioning Map (Overview of all well known/emerging brands who sell premium dresses within the UK)

The map shows the overcrowded nature of the UK market for premium dresses. LBDâ&#x20AC;&#x2122;s primary competitors are other online clothing retailers though they also face competition from brands with physical presences as well as department stores.

(More focused map considering LBDâ&#x20AC;&#x2122;s core competitors based on womenâ&#x20AC;&#x2122;s online survey - Appendix 2, Q7)

Currently operating as a pure play business, slightly more towards the older consumer, positions them not too closely to any of these. However, moving more centrally on this map, by no longer targeting by age, would allow them access to a greater number of consumers giving more opportunity for growth in the future.

Key Competitors ( Most->

% of women who visit brand when looking for occasion dresses (Appendix 2, Q7) Market shares of online UK sales of clothing and footwear 2016

6.67%

50%

Unknown

3.1%

£3 million

£1.7 billion

2016 revenue

(LBD, 2017)

(Arcadia)

(Mintel.com, 2017)

% change in revenue from 2015-2016

Unknown

2016 profit before tax

Unknown

Facebook followers

56 k

4.2 million

Instagram followers

10.9 k

9.2 million

(Facebook.com, 2018)

(Instagram.com, 2018)

-7%

(Ft.com, 2017)

£211.2m

(Geoghegan and Man, 2018)

-> Least visited by women when searching for occasion dresses)

46.67%

Unknown

£2,335 million

+0.8%

(Phx.corporate-ir.net, 2017)

£48.8 million

43.33%

42.22%

5.1%

12%

£1,403.7 million

+26%

(Asosplc.com, 2016)

£63 million

£4,149.7million

+3%

(Nextplc.co.uk, 2016)

£821.3million +5%

(Nextplc.co.uk, 2016)

525 k

5.2 million

2 million

159 k

6.6 million

680 k

These 4 brands present competition in various ways. Topshop is the most visited brand by women when searching for an occasion dress and under parent brand Arcadia achieve the largest volume sales and profits although have experienced a fall in revenue from the previous year. Debenhams are the most popular department store for premium dresses and Next is the leading online fashion retailer within the UK. But it is Asos who should be considered LBD’s closest rival. Having grown by 26% between 2015 - 2016 they’re now the UK’s 5th biggest fashion retailer online and show no signs of stopping. “We think that £4bn, which is double where we are, is what is ahead of us,” - Asos chief executive Nick Beighton (Geoghegan, 2017)

LBD can differentiate itself from Asos through its specialization in premium dresses whereas Asos supplies a much broader range, adding 2,500-7,000 every week! - (Mintel.com, 2017)

SWOT Analysis STRENGTHS Alesha Dixon as shareholder and exclusive collection creator - Wears LBD dresses 20% of the time - Brand USP and creates publicity Latest collection has been most successful due to more abstract approach to shoot Copycats unlikely - difficult due to Alesha Dixon and strict time restraints Operating in a high growth market Sales peak during prom season Best ever selling dress was their most expensive piece at £350 - proving they can sell at this price point Drop-ship accounts for half their sales - 20-30% commission - gives continuous cash flow Draws different consumers to their website Allows LBD to see what other brands are doing before products go on sale Active on social media platforms - offer multiple touch-points to consumers - <10 in 20 days Strong search engine optimization Acquire 350,000 web visits per month Free delivery + returns Work with the charity ‘Refuge’

OPPORTUNITIES Explored in Ansoff’s Matrix (see p.48)

Alesha Dixon currently is both the brands biggest strength and threat. She acts as their USP meaning the brand would be rendered almost worthless if she were to suddenly leave. Due to this, future plans must ensure not to disturb this relationship but also create new incentives to purchase from LBD, strengthening their branding.

WEAKNESSES Highly saturated market Poor retention of customers - only 15% Not only brand using celebrity endorsement other have more than them Restrictive supply - only have 3 suppliers Too many products at higher price point Overall poor brand awareness Poor results from distributing in department stores (left Debenhams and have an 80% return rate from Lipsy) 1% conversion rate Alesha Dixon comes at a high cost - ÂŁ25,000 per shoot - 2 a year Poor engagement rates on social media pages

THREATS Unreliable nature of celebrities - risk of Alesha Dixon not fulfilling expected duties or leaving the business altogether leaving them with no USP Uncertainty regarding the economy due to Brexit could lead to bigger problems in the future Constant risk of upcoming brands who may adopt other celebrities making them a bigger threat

Projected Strategy

Aim and Objectives AIM Strengthen branding and gain more returning customers, creating brand loyalty, to drive online revenue and therefore gain competitive advantage.

LBD recognize there are 4 key steps in gaining and retaining customers. In order to achieve the overall aim each of these must be addressed and fulfilled.

GENERATE AWARENESS Currently 80% of LBDâ&#x20AC;&#x2122;s website traffic is organic - They are able to spend less on ads due to their accurate background content which gives them high Search Engine Optimization Objective Increase brand awareness by 10% year on year

ACQUIRE AND ENGAGE Currently Acquire 350,000 web visits per month Operate on social media sites although arenâ&#x20AC;&#x2122;t fulfilling full potential of these sites and receive little interaction from consumers Objective In first year: Increase Instagram followers from 11.1K to 50K Increase Facebook likes from 56K to 80K

CONVERSION Currently 1% conversion rate Objective Increase conversion rate by 0.5% year on year

RETENTION Currently 15% retention rate - very low Objective Increase retention rate by 3% year on year

Ansoff’s Matrix (Ideas ranks best to worst from top to bottom)

MARKET PENETRATION Emphasize their mission of making women feel fabulous through marketing and communications New partnership with Cancer Research to help the women who need it most Greater celebrity usage Introduce new ambassadors who won’t overshadow Alesha Dixon Greater use of social media and working with bloggers to further reach Selected individuals must be representative of the brand Introduce online stylists to better connect with consumers This would help increase retention rates as staff can push further sales

MARKET DEVELOPMENT Develop a physical presence - help increase brand awareness and appeal to those who don’t want / are unable to buy online Position in busy town centre to increase brand awareness Run stands at wedding fairs putting greater focus on this segment Introduce marketing overseas to increase international sales Partnership with an American celebrity to help endorse the brand in the US

PRODUCT DEVELOPMENT Collaborating with additional celebrities to create one off pieces or full collections to attract new customers from their followers base Focus on a cheaper range with an average price of ÂŁ90 Introduce a LBD line of: Shoes Bags Accessories Perfume

DIVERSIFICATION

LBD should not diversify but rather focus on better establishing themselves on what they are already doing to build a stronger brand identity

LBD should consider adopting at least one idea from each quadrant which will work in harmony towards their overall aim and better their chance of reaching it.

3 Year Strategy Plan

Website Improvements “It has become even more important for retailers to focus on standing out from the competition through a... seamless online experience and excellent customer service.” - (Tamara Sender Ceron, Senior Fashion Analyst, 2017)

PHOTO CONSISTENCY AND 360 VIDEOS

As a pure play company, LBD’s online presence must be impeccable. Consistency must be shown throughout images, using models and the same background for all LBD and drop-ship products as to make the site more visually appealing and dresses easier to compare on screen. 360 videos should also be introduced to better showcase products which can additionally be shared on their Facebook page on a regular basis.

IMPROVED SIZING GUIDES Sizing guides must be up to standard to ensure customers order their perfect dress first time. This will also benefit men gifting dresses to their partners. On average, men are only about 50% happy purchasing a premium dress for a partner completely on their own (Appendix 4, Q6). When asked what would make them feel more comfortable more help with sizing was a common response.

“Returns are the biggest drain of profit margins, particularly in the apparel space, due to the possibility of incorrect sizing. At present, it is estimated that return rates in the region vary between 20 to 40%” -Wanda (Innovation Group, J. Walter Thompson Intelligence, 2017)

“Returns remain a big issue for the fashion sector...50% of online clothes shoppers have returned fashion items they purchased online, rising to 56% of female online clothes shoppers” - (Mintel, 2017)

With enhanced sizing information the rate of returns should decrease as customers experience fewer sizing issues resulting in money being saved for the brand and a greater sense of customer satisfaction being achieved. To do so, they should adopt a similar system to Asos,

asking customers to complete a mini survey; collecting their measurements or to compare to products theyâ&#x20AC;&#x2122;ve previously purchased from other brands as well as giving suggestions based on other customers experiences.

CONCEPT CONCESSIONS

Women aged 36-45 (LBD's current core customer) are mostly influenced by trends they see in store when styling (Appendix 2, Q10) making a physical presence crucial for LBDâ&#x20AC;&#x2122;s future in order to attract more customers from this segment. Staff will also have face to face contact with customers and will therefore gain insight to their real thoughts and opinions of products.

‘Retail spaces as we know them – the kind of spaces where you have a stockpile of inventory and expect sales to come – are set for a dramatic pare-down, and maybe extinction,’ - (Julia Fowler, co-founder of fashion analytics company Edited, Courier Magazine, 2017)

Concept stores are the future for premium retail. When buying premium, the experience has become just as important, if not greater, than the final purchase itself and can act as a colossal point of difference for brands. As an emerging brand, it’s a way for LBD to express their story and new-found values allowing them to build a stronger relationship with consumers. It’s essential to make a physical presence visually engaging and experiential whilst remaining consistent with their other platforms such a consistent use of: Colour (gold, red/pink and black) Story (of feeling fabulous) Ambassador (Alesha Dixon) Props (balloons or confetti)

LBD shall be positioned as a concession in House of Fraser as to lower costs and gain footfall from the department storeâ&#x20AC;&#x2122;s existing customers, gaining association with the other premium brands. The first shall be within a London store, as 27% of LBDâ&#x20AC;&#x2122;s existing customers are located here (LBD, 2017), the exact store shall be dependent on the space available and offering of HOF. The second shall launch in Manchester and roll out to other towns in future. This is an opportunity to present a new way to better integrate online and offline presences with the store acting primarily as a display unit. Following the Forgotten Generation trend, The Ageless Women shall be the first to adopt this new approach, leading the market into the future. Customers would view products in-store, order their perfect dress with the help of staff for it then to be delivered free of charge to their home. With free returns also available there is no reason consumers shouldn't order.

(Examples of conceptual fashion stores LBD should aspire to)

CANCER RESEARCH PARTNERSHIP

LBD's main aim is to make women feel fabulous so what better way to reiterate this than by helping those women who need it most.

â&#x20AC;&#x153;To create value, brands need to be different and maintain clear, strong brand values.â&#x20AC;? - (BOF TEAM AND MCKINSEY & COMPANY, 2016)

A new partnership with Cancer Research with the focus on breast cancer will develop brand values improving their public image via the halo effect, strengthen their branding and give consumers an extra incentive to buy from them.

(New logo design)

To maximise awareness, the Cancer Research ribbon shall be incorporated into the LBD logo representing the close relationship between the two.

CURRENT

FUTURE

The brand currently works with charity Refuge, donating £1 for every LBD or Alesha Dixon dress sold. The new partnership would operate in a similar manor though money should also be donated from drop-ship items meaning the brand could state that '£1 will be donated from EVERY dress sold...' Better promoting their charity involvement will help push individuals to their final purchasing decision thereby improving their conversion rates.

“I think a lot of brands often don’t let customers know clearly enough about the work they do with charities.” - Sophia Hargon (Appendix 5, Interview 2)

(Example new website home page highlighting Cancer Research Partnership)

(Example new checkout page with Cancer Research donation box)

An additional charity donation option shall also be introduced at checkout as well as donation boxes being placed at every concession.

Dresses would be donated to celebrities helping promote the cause, appearing on red carpets and events across the country and potentially globally. Additionally, certain celebrities, for instance Victoria Beckham as an existing fashion designer, may be interested in collaborating to create one off pieces which would be priced above an average LBD dress to increase its profit margin for the brand and allow a larger donation to Cancer Research; the celebrity tag adding to its perceived value. A future want highlighted by LBD was for new celebrity partnership. Celebrities hold a following and have the ability to reach vast numbers of people through their social media pages and press coverage. The problem, however, is the price tag attached to them; a price the brand is already paying. Moreover, there is fear of Alesha Dixon being overshadowed therefore potentially not being cooperative with a new celebrity addition. Working with celebrities via Cancer Research would eliminate these issues as partnerships could take place cost free with no one being as involved with the brand as Alesha. Alesha herself has worked with 11 charities previously, including Cancer Research, most recently appearing at their charity event in April 2017, making cooperation to this strategy more plausible.

â&#x20AC;&#x153;Celebrities add value to the image transfer process, sustaining brand communication and achieved a higher level of attention and recall.â&#x20AC;? - (Chiosa, 2013)

Selection of female celebrities who have previously supported Cancer Research

Heidi Klum Jessica Ennis Keira Knightly Lily Cole Michelle Keegan Peaches Geldof Scarlett Johansson Sharon Osbourne Victoria Beckham

“The right celebrity...can give the brand a powerful third-party endorsement and positive halo effect by agreeing to being associated with it” - (Pringle, 2004) The Source Attractiveness Model shows that the effectiveness of celebrity endorsement is dependent on their familiarity, likability and similarity to the public (Strunck, 2011). These ‘big name’ celebs are well known, likable due to their connection to Cancer Research and relatable to women as they too wish to feel fabulous at events.

Finally, product packaging must be considered. To be in keeping with the brand and give a premium feel, all dresses should arrive in a black box held together with a pink ribbon; representative of Cancer Research. Along with this, a tag should be attached with thanks from the charity and stating the achievements made, helping women, due to donations. This will develop a stronger sense of connection for the consumer, due to the emotional tie created, and achieve a greater sense of satisfaction after purchase making a repeat buy more likely.

DRIP DIFFERENTIATE By differentiating a brand or product will draw attention from consumers. LBDâ&#x20AC;&#x2122;s current differentiation point is Alesha Dixon and their aim of making women feel fabulous. Strengthening this point will further awareness of the brand to the naive market.

REINFORCE Reinforcing this idea will lead to interest being shown from consumers. Working with Cancer Research will reinforce their aim as they would be making efforts to help women who need it most.

The DRIP model can be aligned with the AIDA model and here demonstrates how the Cancer Research partnership shall help move consumers onto the next stage of their purchasing decision.

INFORM Better informing of the differentiation point shall lead to desire from consumers. The partnerships with cancer surviving bloggers and celebrities also working with Cancer Research shall inform the public of the brand and their values. This will take place with celebrities wearing LBD to charity events while sharing them on social media and through press coverage.

PERSUADE Proper persuasion that the differentiation point is true, making the brand or product seem superior to rivals, shall lead to the action of a purchase being made by the consumer The final persuasion shall take place on the LBD website with more emphasis being made on their charity work. With customers reminded at checkout that some of their money is being donated and with the arrival of their product on the tag stating how that money is being used customers will be reassured of the brands aim and differentiating point. Consumers seeing the extra benefit of helping charity shall lead to their final decision being made. This will be particularly effective on The Unconverters.

Communication Plan (Example message sent to LBD Facebook followers)

"Specifically within the fashion industry, high-end designers and reputable brands are turning to social media channels to not only inform, but increase, their consumer base through brand exposure." - (Thornley, 2014)

Facebook is the most used social media platform by women (Appendix 2, Q8), making it crucial to fully optimize. To follow the bots and conversational commerce macro trend, the brand should send personalized messages through Facebook messenger at key points in the year, such as just before Christmas, Valentine's Day or individual's birthdays, to remind previous buyers of the brand. Products the individual is likely to be interested in will be displayed thereby increasing the chance of a purchase resulting in improving their retention rates. This tactic will push for impulse purchases to be made especially via mobile.

#feelingfabulous

"Fashion bloggers have become trusted sources of new and emerging trends and products for fashion audiences to rely upon for inspiration and consumption." - (Thornley, 2014)

LBD can take advantage of such individuals new found status through partnerships thereby reaching their followers. Instagram bloggers would post images wearing their dresses, tagging the brand and attaching a link to buy the dress shown along with #feelingfabulous for others to follow.

“ “Word of web” is a proven best practice to promote your product or your organization’s mission.” - (Harden and Heyman, 2009)

“Millennials in particular exhibit a propensity towards media sharing platforms, such as Instagram and Snapchat, paving the way for brands to now give these channels a more central role in campaigns.” - (Mintel.com, 2017)

The use of Instagram will be most effective on The Unconverters, aged 20-35, pushing for more purchases to be made as they see products being flaunted by their favourite bloggers.

(Example partnership post for LBD with @waityouneedthis)

Cathy Williamson @themiddlepageblog

LBD should additionally strive to work with cancer surviving fashion bloggers, such as Cathy Williamson. Such bloggers can promote the brands newly embraced values and charity work while sharing their own journey. Cathy herself also fits The Ageless Women segment making her perfectly suited to represent the brand. Initially, discount codes or giveaway competitions could be used in conjunction to better gauge the number of consumers being brought to the site, who may be purchasing different items, due to these influencers. Working with a range of bloggers will prove beneficial as each will style dresses in various ways, appealing to a range of markets.

@heidiklum

@scarlettjohanssonoffical

(Example celebrity Instagram post) “Amazing night at the Cancer Research event with a huge amount being raised! Big thanks to @teamlbd for this dress! Help yourself and millions of women feel fabulous by getting yours now as £1 from every dress bought shall be donated! Visit www.littleblackdress.co.uk #feelingfabulous”

@victoriabeckham

@michellekeegan

â&#x20AC;&#x153;20% of all advertising employs celebrities. All evidence suggests that these campaigns are very effective in promoting the corporate, product and service brands with which they are aligned.â&#x20AC;? - (Pringle, 2004)

It is the additional celebrity endorsement which will draw in the most new customers. Similarly to bloggers, they shall tag the brand and dresses they wear to charity events, increasing brand awareness and emitting their values and core mission of making women feel fabulous!

Core Competencies CURRENT Involvement of Alesha Dixon Only current differentiating point

WITH STRATEGY Innovative integration between online and offline presences

Using physical presence as a display sending customers to website or orders through the same process

Added incentive to help others with charity partnership

Only 2 fashion retailers partner with Cancer Research - neither operating in the same way LBD shall

Expansive social media reach due to celebrity and blogger partnerships

Obtaining celebrity endorsement at no cost where other brands will be charged extortionate fees

Timeline For Implementation COMMUNICATION PLAN Stages Colour Key RESEARCH

DISCUSSIONS

DEVELOPMENT

IMPLEMENTATION

MEASURE (Months)

Tactic

(See correspondong numbers on next page)

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 1 2 3 4

CONVERSATIONAL COMMERCE Research into how to best communicate with customers via messenger. Once set up, messages will be sent on a regular basis (roughly monthly or more around peak sales periods such as Christmas, the customers birthday and Valentineâ&#x20AC;&#x2122;s Day) and their effectiveness constantly measured.

WORK WITH BLOGGERS Initial research into who the best partners would be. Discussions to gauge cooperation levels. Once implemented content will continue to be developed and posted while constantly being measured . Talk to new bloggers every few months.

CELEBRITY SOCIAL MEDIA POSTS

1 2 3

Work with celebrities will only begin once a partnership is built with Cancer Research. Research shall begin before this to assess the best first partner. Discussions may take longer than with bloggers due to the unreliability of celebrities. Once agreed posts will continue to be uploaded and engagement measured.

PRESS COVERAGE Press coverage will only begin as celebrities wear LBD to charity events. This is out of the brandâ&#x20AC;&#x2122;s control meaning measurement is the only stage here.

STRATEGY PLAN

(Year and Quarter)

Y1 Q1

Y1 Q2

Y1 Q3

Y1 Q4

Y2 Q1

Y2 Q2

Y2 Q3

Y2 Q4

Y3 Q1

Y3 Q2

WEBSITE DEVELOPMENT

2 3

CONCEPT CONCESSION

Tactic

(See correspondong numbers on next page)

1 2 3

CANCER RESEARCH PARTNERSHIP

Y3 Q3

Y3 Q4

WEBSITE DEVELOPMENT

IMPROVED SIZING GUIDES

Research will review other brands sizing guides and develop a portfolio comparing products from a wide variety. Once developed, implementation will be quick. There will be no measurement here but the brand will remain open to customer feedback on the new service and continue to strive for ways to improve further in the future.

PHOTO CONSISTENCY

New photoshoots can begin immediately with LBD products. Discussions shall begin with drop-ship brands conveying the criteria to meet in future shoots. It may take a while for all items to be consistent due to some of this work being external.

360 VIDEO OFFERING Similarly with the photos, some videos may have to be shot externally. Those for LBD dresses can be shot immediately but others may take time.

CONCEPT CONCESSION

CONCESSION IN LONDON STORE To be implemented during the Christmas period of year 2; allowing a lot of time for research, discussions and development.

CONCESSION IN MANCHESTER STORE Slightly shorter development stage than the London stores as much can be carried over.

PLANS TO ROLL OUT CONCESSIONS IN 3 ADDITIONAL STORES By the end of year 3 aim to have plans in place to continue expansion.

CANCER RESEARCH PARTNERSHIP

Once partnership is agreed future activities will be associated with communication plan.

Budget COMMUNICATION PLAN (Short term costs - 1 year)

CONVERSATIONAL COMMERCE No cost

WORK WITH BLOGGERS Sponsored posts - bloggers may be willing to offer a lower rate due to the partnership with Cancer Research

CELEBRITY SOCIAL MEDIA POSTS No cost

PRESS COVERAGE No cost

WORK WITH BLOGGERS

Year

Number of bloggers working with

Number of posts per blogger

Total number of posts

£1,500

£6,000

£30,000

£60,000

Average cost per post Total cost

STRATEGY PLAN

WEBSITE DEVELOPMENT Reshoots and additional video content (included on p.88)

CONCEPT CONCESSION House Of Fraser paid via commission as opposed to a set rent fee (20-30%) Costs of: design, development and implementation and staffing - use own staff to ensure theyâ&#x20AC;&#x2122;re fully trained on brand background and values and have expert knowledge with sizing

CANCER RESEARCH PARTNERSHIP No cost

CONCEPT CONCESSIONS

LONDON Year

Rent

N/A

£0

Design

N/A

£2,500

N/A

Development / Implementation

N/A

£10,000

N/A

Staff

N/A

£30,000

MANCHESTER Rent

N/A

£0

Design

N/A

£2,000

Development / Implementation

N/A

£7,500

Staff

N/A

Total

N/A

£12,500

£39,500

TOTAL COSTS

Year

Work with bloggers

£6,000

£30,000

£60,000

Website development

£10,000

N/A

£12,500

£39,500

£16,000

£52,500

£99,500

Concept Concessions Total

£168,000

KPIs (Measurements to review success of strategy in terms of aims set)

GENERATE AWARENESS Brand awareness can be gauged by the level of engagement

ENGAGEMENT

Checking social media platforms on a 2-week basis and monitor the performance (reviewing number of followers and engagement levels in terms of post comments and link clicks on LBDâ&#x20AC;&#x2122;s page along with partnering bloggers and celebrities)

Monitor Analytics to deduce where the web traffic is generated e.g. social media links or organic searches

CONVERSION

ÂŁ

Monitor the success of concession through sales

Monitor Analytics on a weekly basis to monitor conversion rates (comparing website visits to the number of actual purchases)

RETENTION

Monitor repeat purchases and account logins

Balanced Scorecard (Additional measurements to assess overall situation of the business)

MISSION

â&#x20AC;&#x153;Empowering women to feel fabulous is our key mission in life.â&#x20AC;?

AIM

Strengthen branding and gain more returning customers creating brand loyalty to drive online revenue and therefore gain competitive advantage.

FINANCIAL FOCUS Maximise sales and revenue KPI Number and value of purchases

CUSTOMER FOCUS Maximise customer satisfaction KPI Retention rate Return rate

INTERNAL PROCESSES FOCUS Stremline delivery proccess KPI Delivery times and accuracy

ORGANISATIONAL CAPACITY FOCUS Expansive employee knowledge (particularly at concessions) KPI Employee retention

Conclusion NEW STRATEGY PRODUCT Same high quality dresses; own label, Alesha Dixon collection and drop-ship brands Additional one off pieces with Cancer Research celebrity partners

PLACE Still operate primarily as an online business improved sizing guides will increase customer confidence in buying and reduce returns rates Concept concessions in House Of Fraser where products can be viewed and customers can receive expert help, especially regarding sizing, from staff. Orders can be placed here delivered free of charge with the reassuring knowledge that returns are also free Creating a physical presence, an additional distribution channel, shall further increase their brand awareness while attracting new consumers who may not shop online. They shall appear as a brand of innovation through the new cohesive measures between off and online platforms. Operating within House Of Fraser will reduce renting costs while building association to other premium brands and gain footfall from their existing customers

PRICE Same pricing strategy on existing items One off collaborative pieces priced slightly higher to give a larger donation to Cancer Research and achieve a larger profit margin celebrity partnership adds value to the product

PROMOTION Increase press coverage through the donation of dresses to celebrities attending Cancer Research events Greater optimisation of social media platforms Facebook and Instagram Develop greater brand awareness and encourage an increased level of web traffic and sales through bloggers (including cancer survivors) and celebrities posting and tagging the brand on Instagram To further interaction with the brand and give incentive to visit their site or social media pages initially give-away competitions can be used. This will also help better gauge the effectiveness bloggers are having for the brand and help with plans for the future Retention rates shall be increased through the use of conversational commerce on Facebook, messaging previous buyers with personalised offers and products at peak sales periods such as birthdays and Christmas

PROCESS The manufacturing process will remain the same but is something LBD should review in the longer term as the business grows and they require higher capacity levels

PEOPLE Alesha Dixon will remain as shareholder, brand ambassador and exclusive collection creator Cancer Research will become a key stakeholder and partner helping emit the brandâ&#x20AC;&#x2122;s core mission of making women feel fabulous and create a positive brand image The partnership shall open opportunities to partner with a number of celebrities without the hefty price tag usually incurred Celebrities and bloggers will be vital in order for the business to grow

PHYSICAL EVIDENCE Packaging shall become an after purchase tactic to enhance customer satisfaction and reiterate brand values by informing customers through the simple use of tags how their money is being used by Cancer Research to help women

“I think a woman has her own style and knows who she is; she doesn’t have to dress for being 60 or 20 or 90.” - Iris Apfel, (BOF TEAM AND MCKINSEY & COMPANY, 2016)

In conclusion, it is the aim to ‘make women feel fabulous’ which should guide LBD into the future, coordinating their marketing efforts. It’s vital they don’t limit themselves by targeting a specific age group but rather any woman in the search of an occasion dress wishing to feel their best. These tactics over the next 3 years, working in harmony, will help generate awareness, increase engagement, conversion and retention rates to meet the objectives set whilst also enhancing their branding. LBD shall draw from Cancer Research’s established public awareness and consumers shall develop a sense of loyalty to the brand as they offer additional emotional incentives. Celebrity partnerships shall add perceived value, maintaining their premium positioning.

“For a brand to succeed in the modern social, economic and political environment ... marketing has to concentrate on doing three interrelated things really well: being famous...” (through the use of celebrities)

“...being likeable...” (via the partnership with Cancer Research),

“...and being consistent.”

(directing all activity towards the aim of making women feel fabulous!) - (Pringle, 2004)

#feelingfabulous

Appendices Appendix 1 - Womenâ&#x20AC;&#x2122;s Online Survey (Questions)

102

103

104

105

Appendix 2 - Womenâ&#x20AC;&#x2122;s Online Survey (Answers) (Responses from 90 women aged 20 and above)

106

107

(‘Other’ responses)

108

109

110

(‘Other’ responses)

111

112

113

Appendix 3 - Menâ&#x20AC;&#x2122;s Online Survey (Questions)

114

115

Appendix 4 - Men’s Online Survey (Answers) (Responses from 50 men aged 18 and over)

(‘Other’ responses)

116

117

118

119

(‘Other’ responses)

120

121

Appendix 5 - Individual Interiviews (Questions and Responses Transcripts) INTERVIEW 1 Interview with: Alice Whyte Age: 20 What factors do you consider when buying a occasion dress and which is most important to you?

I look for style and good fitting but in the end it’s really down to price for me as I have very little income.

Would you buy one online?

Yes, I buy most of my clothes online, I do look for free returns though if I’m not sure about something.

Do you currently donate to a charity?

Would a charity partnrship alter your opinion of a brand?

I’d probably see them as a better brand and less selfish and profit based, depending on the charity I might even think the products are better quality

Could it push you to make a purchase from them over a competitor?

I noramlly don’t really know if brands work with charities so most likely not.

Do you think celebrities make an impact on your style choices?

I read a lot of gossip magazines and quite often see stuff I like on celebs in there. I don’t go to shops based just on that but might take inpiration from their outfits.

Do you use social media for style inspiration at all from bloggers?

I follow a lot of bloggers on Instagram and Youtube quite often follow links to websites they promote but don’t often buy from them as I don’t have the money.

122

INTERVIEW 2 Interview with: Sophia Hargon Age: 43 What factors do you consider when buying a occasion dress and which is most important to you?

I like something which can make me feel good about myself, I want to feel comfortable with what I’m wearing and don’t mind having to pay a bit more if it means I’ll enjoy my night more.

Would you buy one online?

I have done in the past but they never seem to fit me so I’ve returned them every time and gone elsewhere.

Do you currently donate to a charity?

I do

Which ones?

RSPCA, Cancer Research and Children In Need

Would a charity partnrship alter your opinion of a brand?

It would and I think all brands should. Those businesses don’t need all that money, it could be much better used by charities helping others.

Could it push you to make a purchase from them over a competitor? If I found something similar in 2 places then yes, probably but I think a lot of brands often don’t let customers know clearly enough about the work they do with charities. Do you think celebrities make an impact on your style choices? I wouldn’t intentionally go and buy something just because I saw it on a celebrity, no. Do you use social media for style inspiration at all from bloggers?

I only really use Facebook.

123

INTERVIEW 3 Interview with: Charlotte Elliott Age: 27 What factors do you consider when buying an occasion dress and which is most important to you? I’d very rarely buy an occasion dress so when I do I want it to be perfect! Perfect style, nice material and a great fit which can normally be a bit expensive if I’m honest, I often try to buy them in sales when I can. Would you buy one online?

Finding something that fits me properly is always a big trouble, I think my proportions don’t fit standard sizes, so buying something a bit more expensive I’d normally go in store.

Do you currently donate to a charity?

Not on a regular basis but I always give at Christmas or to events on TV.

Which ones?

Always Children In Need and it varies at Christmas.

Would a charity partnership alter your opinion of a brand?

It might do, it depends who the brand is really, like if they have quite a bad reputation working with a chairty won’t fix that.

Could it push you to make a purchase from them over a competitor?

Maybe but I think I’d consider other factors first.

Do you think celebrities make an impact on your style choices?

I think I am infuenced quite a bit from celebrities. I don’t purposely copy them but am up to date of celeb gossip and see pictures of them all the time and often comment or take note of what I like from them.

Do you use social media for style inspiration at all from bloggers?

I follow a lot of bloggers and occasionally buy items to try to recreate their looks.

124

INTERVIEW 4 Interview with: Tyra Lane Age: 39 What factors do you consider when buying an occasion dress and which is most important to you? It depends on the occasion, if it’s one for holiday, something quite flowy I can get away with getting something a bit cheaper but for other event I want something a bit nicer, nicer materials and a tighter fit so will pay a bit more for them. Would you buy one online?

I don’t really shop online, I can find it quite confusing and cluttered so would prefer to go in store and can get help from staff if I need it.

Do you currently donate to a charity?

Not at the moment, no.

Would a charity partnership alter your opinion of a brand?

I think a lot of brands do kind of one off partnerships so that wouldn’t change my perception of them.

Could it push you to make a purchase from them over a competitor?

I might buy from a collaborative range and feel good about it.

Do you think celebrities make an impact on your style choices?

No I don’t really follow celebrities.

Do you use social media for style inspiration at all from bloggers you may follow?

I don’t really follow bloggers but do sometimes get style or home inspiration from social media.

125

Appendix 6 - Individual Interviews (Consent Forms)

126

127

128

129

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